Since January 26, bullish persistence above 0.6500 was mandatory to keep pushing the NZD/USD pair towards higher bullish targets.
However, a temporary bearish rejection has been expressed around 0.6550 for almost two weeks resulting in the depicted consolidation range.
On January 28, the depicted support level of 0.6400 acted as a prominent key level offering a valid buy entry. A bullish breakout above 0.6550 was executed earlier last week.
Bullish persistence above 0.6550 (depicted recent support) was needed to keep the price moving towards higher bullish targets.
The area of 0.6700-0.6750 constituted a significant resistance zone. Recent signs of a bearish rejection were seen near the same zone during the previous few weeks.
On February 9, the NZD/USD pair failed to consolidate below the depicted support level of 0.6570.
Moreover, obvious bullish recovery was expressed at 0.6570 (temporary support level) on Wednesday. Hence, the recent bullish swing towards 0.6700 was initiated.
The zone of 0.6700-0.6750 remains a significant resistance to offer a valid sell entry. S/L should be located above 0.6770.
Note that persistence below 0.6570 will be essential to allow further bearish decline towards the zone around 0.6500 where price reaction should be watched for a possible buy entry.
If the market fails to move below 0.6570, more sideways movement will be expected.
The material has been provided by InstaForex Company - www.instaforex.com